Canopy Growth Corp almost triples revenue as number of patients soars
A 180 per cent increase in revenue is a barometer of a successful quarter for most companies, but it managed to disappoint analysts following Canada’s first billion dollar marijuana company, Canopy Growth Corp., where inventory constraints limited its third quarter sales potential.
The company, based out of a converted chocolate factory in Smith’s Falls, Ont., turned a profit for the first time in its short history, booking $3 million in net income, compared to a net loss of $3.3 million in the prior year period.
Revenue rose 180 per cent year-over-year to $9.8 million, lower than analysts’ estimates of around $10.9 million.
Canopy’s share price fell seven per cent to $12.09 on the Toronto Stock Exchange.
Inventory at the end of December was valued at $50.6 million. CEO Bruce Linton told analysts the company was running low on some key products such as mid-to-high THC level products as well as oils, a popular alternative to smoking for medical marijuana patients.
“If we had a bit more product and a bit more diverse product, we expected a bigger number,” he said.
The revenue constraints were due to a lack of supply amid increasing demand.
“There are more people becoming patients than there are capable suppliers,” Linton said. Its patient base has increased some 260 per cent to 29,000 in December compared to 8,000 in December 2015.